General Situation of Relevant Business Subsidiary ...

Trade Service

    The trade service sector of Baosteel operates to render service in processing and trading steel products and related material, to improve Baosteel’s service capability in processing, trading and logistics as well as in material supply solutions. Its core enterprise is Shanghai Baosteel International Economic & Trading Co., Ltd.

Finance Sector

    As a strategic industry reserved for further development, Baosteel’s financial sector involves itself mainly in five financial fields including insurance, commercial banking, securities, financial services and trust, a total of RMB 5.3 billion already invested into Shanghai Pudong Development Bank, Bank of Communications, Huatai Insurance Company of China, Limited, New China Life Insurance Co., Ltd., Fujian Industrial Bank Co., Ltd, and China Pacific Insurance (Group) Co., Ltd. in which it is the largest shareholder. Its core enterprises are Baosteel Group Finance Co., Ltd. and Fortune Trust & Investment Co., Ltd.

Engineering & Technology

    Baosteel’s engineering and technology industry provides technical support to and develops together with Baosteel’s main steel business. It takes pride in its integrated and professional advantages in such areas as plant design, equipment design, equipment manufacture, package equipment, technical integration, engineering contracting and technical consultancy. It is working toward establishing its core technology and advancing the process of industrializing scientific research achievements, to form its engineering & technology industry of global competitive edges. Its core enterprise is Shanghai Baosteel Engineering & Equipment Co., Ltd.

Information Technology

    Baosteel relies on its Information Technology Industry for automation control and information management in its steel production. Its business scope covers information and automation for both the manufacturing sector and non-manufacturing sectors as well as over-seas software engineering contracting. Its core enterprise is Shanghai Baosight Software Co., Ltd.

Coal Chemical Industry

    The coal chemical industry is a resource utilization type of industry in Baosteel, primarily serving the production requirements of the main steel business. It’s primary business is deep processing products of coal chemical industry. Its core enterprise is Shanghai Baosteel Chemical Co., Ltd.

Steel Downstream Processing Industry

    Steel downstream processing is a steel-related extension industry suited to Baosteel’s premium steel products strategy, aiming at the high-end field of three businesses: metal packaging, auto parts and steel structure.

Recycling

    The recycling industry assists Baosteel in the clean production of steel and in building up its ISO14001 environmental management system so as to realize efficient disposal and utilization of such industrial wastes and by-products produced from steel as slag, dust, sludge, waste gas, waste oil and etc. It aims to industrialize the utilization of major wastes and by-products by improving the recycling rate and increasing the percentage of high value-added products. Its core enterprise is Baosteel Group Enterprises Development Corporation.